COLUMBUS, Ohio--(BUSINESS WIRE)--Residential Finance Corporation (RFC), a nationwide FHA-approved mortgage lender with headquarters in Columbus is helping homeowners take advantage of new opportunities made available by recent changes in FHA mortgage qualifications and the newly announced Housing and Economic Recovery Act of 2008.
“The Housing and Economic Recovery Act of 2008, and the Economic Stimulus Package passed earlier this year give us many new options help homeowners refinance with secure, low-interest, fixed-rate FHA loans insured by the federal government,” says Residential Finance Corporation Branch Manager, Chad Beldon.
Teachers and parents of three, Miguel Hernandez and his wife had recently begun the process of refinancing their home. “We bought our house five years ago. We have good credit and thought it would be easy for us to refinance to get a lower interest rate,” says Hernandez. “We applied for refinancing with a company that said they would get us a great rate. But after a month of waiting, then trying to get through to our loan officer, I learned that our application hadn’t even been completed yet. What’s worse, they were quoting a much higher interest rate than what we had originally been promised. After that experience, we were very upset and disappointed with the process and ready to stay with our original higher rate.”
Hernandez continues, “Then we got a call from Trevor Tharp, a loan officer at Residential Finance. He was very knowledgeable and understood our needs. He recommended an FHA loan and suggested that if we paid bi-weekly instead of monthly we could get our interest rate down to 5.25 percent, and we could cut our mortgage from 30 down to 24 years.
“Trevor also told us that with our FHA loan, if the rate goes lower, we may be eligible to refinance in six months and just pay the title fee and no closing costs,” notes Hernandez. “My wife and I love being with our family and our children are into lots of activities like soccer, martial arts, and gymnastics. Thanks to Residential Finance and the government’s new FHA programs, Trevor’s financing suggestions are going to open up more money for the children’s activities and for 521 college savings.”
Beldon adds, “The legislation raises the limits on FHA-insured mortgages, giving more homeowners access to the low-interest, government backed loans. That’s good news for homebuyers and those facing possible foreclosure due to restrictive adjustable rate mortgages. Residential Finance has been an FHA-approved lender writing these loans for many years. We have the expertise to help borrowers understand the full range of benefits now available and to get them approved quickly and easily. Whether a homeowner is simply seeking a better rate like the Hernandez family, or if they are staring foreclosure in the face, now is the time to act.”
The FHA estimates that 400,000 borrowers are in danger of losing their homes and the Housing and Economic Recovery Act will enable many to refinance into more affordable government-insured mortgages. The program begins on October 1, 2008 but the FHA urges homeowners who are in danger of losing their homes before that date to contact their loan servicers and begin the application process immediately.
“Across the country, Americans are working hard to keep their homes as they struggle against higher energy and food prices,” Beldon said. “We’re working hard to inform borrowers that they’ve got new, lower cost options now.”
For information about FHA-backed loans, contact Residential Finance Corporation at 1-800-930-REFI.
About Residential Finance Corp
Founded in 1997, Residential Finance Corporation (RFC) is the nation’s premier mortgage lender. “Full Eagle” certified by the FHA, RFC offers great rates on government-insured loans. From headquarters in Columbus, OH and numerous regional offices, RFC serves 24 states. RFC’s investor relationships include some of the nation’s largest and most diverse investment banks. RFC employs hundreds of knowledgeable Home Loan Consultants dedicated to helping consumers find the right loan--with the best rates, terms and costs--to meet each homeowner’s unique needs, including individuals with less-than-perfect credit, and those who may have been turned down by other lenders. For more information, contact Jessica Manna, Chief Marketing Officer of Residential Finance, at 614-255-4317.